[Federal Register Volume 81, Number 136 (Friday, July 15, 2016)]
[Notices]
[Pages 46147-46151]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16724]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78285; File No. SR-NASDAQ-2016-087]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Automated Removal of Orders and Quotes

July 11, 2016.
    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 30, 2016, 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 and II below, which Items have been prepared by the Exchange. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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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

    The Exchange proposes to amend the rules of the NASDAQ Options 
Market LLC (``NOM'') at Chapter VII, Section 6(f), entitled ``Automated 
Removal of Orders and Quotes.''
    The text of the proposed rule change is available on the Exchange's 
Web site at http://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 Exchange proposes to amend a NOM Rule at Chapter VII, Section 
6(f), entitled ``Automated Removal of Orders and Quotes'' to modify the 
minimum Specified Percentage (as described below). A NOM Market Maker 
\3\ sets the Specified Percentage to enhance its risk management for an 
underlying security as market conditions warrant, based on its own risk 
tolerance level and quoting behavior. The Exchange proposes to permit 
the NOM Market Maker to set the Specified Percentage more broadly, no 
less than 1% with this rule change. The Exchange also proposes to 
replace the term ``disseminated size'' \4\ with a quantitative 
description to add transparency with respect to the calculation of 
Series Percentage.
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    \3\ The term ``Nasdaq Options Market Maker'' or ``Options Market 
Maker'' (herein ``NOM Market Maker'') means an Options Participant 
registered with the Exchange for the purpose of making markets in 
options contracts traded on the Exchange and that is vested with the 
rights and responsibilities specified in Chapter VII of these Rules. 
See NOM Rules at Chapter I, Section 1(a)(26).
    \4\ See Securities Exchange Act Release No 76316 (October 30, 
2015), 80 FR 68595 at 68597 (November 5, 2015) (SR-NASDAQ-2015-122). 
The Exchange defined disseminated size in this rule change in 
footnote 13, as the original size quoted by the Participant.
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Background
    Today, Chapter VII, Section 6(f) permits NOM Market Makers to 
monitor risk arising from multiple executions across multiple options 
series of a single underlying security. A NOM Market Maker may provide 
a specified time period and a specified percentage by which the 
Exchange's System will automatically remove a NOM Market Maker's quotes 
and orders in all series of an underlying security submitted through 
designated NOM protocols, as specified by the Exchange, during a 
specified time period not to exceed 15 seconds (``Percentage-Based 
Specified Time Period.'').\5\
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    \5\ A specified time period commences for an option when a 
transaction occurs in any series in such option.
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    For each series in an option, the System determines: (i) The 
percentage that the number of contracts executed in that series 
represents relative to the NOM Market Maker's disseminated size of each 
side in that series (``Series Percentage''); and (ii) the sum of the 
Series Percentage in the option issue (``Issue Percentage''). The 
Exchange proposes herein to replace the term ``disseminated size'' with 
the more precise phrase ``number of contracts available at the time of 
execution plus the number of contracts executed in unexpired prior 
executions.''
    The System tracks and calculates the net impact of positions in the 
same option issue during the Percentage-Based Specified Time Period. 
Specifically, the System tracks transactions, i.e., the sum of buy-side 
put percentages, the sum of sell-side put percentages, the sum of buy-
side call percentages, and the sum of sell-side call percentages. The 
System then calculates the absolute value of the difference between the 
buy-side puts and the sell-side puts plus the absolute value of the 
difference between the buy-side calls and the sell-side calls. If the 
Issue Percentage, rounded to the nearest integer, equals or exceeds a 
percentage established by the NOM Market Maker, not less than 100% 
(``Specified Percentage''), the System automatically removes a NOM 
Market Maker's quotes and orders in all series of an underlying 
security submitted through designated NOM protocols, as specified by 
the Exchange, during the Percentage-Based Specified Time.
    The Percentage-Based Specified Time Period commences for an option 
every time an execution occurs in any series in such option and 
continues until the System removes quotes and orders as described in 
Chapter VII, Section 6(f)(iv) or (v) or the Percentage-Based Specified 
Time Period expires. The Percentage-Based Specified Time Period 
operates on a rolling basis among all series in an option in that there 
may be multiple Percentage-Based Specified Time Periods occurring 
simultaneously and such Percentage-Based Specified Time periods may 
overlap.
Proposal
    The Exchange proposes to lower the minimum Specified Percentage, 
which is set by the NOM Market Maker, from 100% to 1%. The proposal 
would

[[Page 46148]]

amend the rule text to state, if the Issue Percentage, rounded to the 
nearest integer, equals or exceeds a percentage established by the NOM 
Market Maker, not less than 1% (``Specified Percentage''), the System 
automatically removes a NOM Market Maker's quotes and orders in all 
series of an underlying security submitted through designated NOM 
protocols, as specified by the Exchange, during the Percentage-Based 
Specified Time. This proposal would allow a NOM Market Maker to 
establish a Specified Percentage at any percentage level greater than 
or equal to 1% for an option in which the NOM Market Maker is 
appointed. Today, the Specified Percentage would be set by the NOM 
Market Maker at greater than or equal to 100%. This amendment will 
allow NOM Market Makers to better manage their risk and assist them to 
avoid trading a number of contracts that exceeds the NOM Marker Maker's 
risk tolerance level across multiple series of a single underlying when 
such series are executed in rapid succession.
    NOM Market Makers will be able to more precisely customize their 
risk settings within the System. NOM Market Makers will be able to 
consider factors such as present and anticipated market conditions, 
news in an option, and a sudden change in volatility of an option. NOM 
Market Makers are required to utilize either the Percentage Based 
Threshold or the Volume Based Threshold. NOM Market Makers that select 
to utilize the Percentage-Based Threshold will be able to adopt more 
precise controls with this proposal based on the NOM Market Maker's 
risk tolerance level.
    NOM Market Makers must utilize either the Percentage-Based \6\ or 
Volume-Based risk controls. NOM Market Makers may contact Market 
Operations to set their percentage, which is 1% or greater with this 
proposal, and specified time period.
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    \6\ NOM Market Makers selecting the Percentage-Based risk 
control in Chapter VII, Section 6(f)(i) are required to provide a 
specified time period, up to 15 seconds, and a specified percentage 
with a number of 1% or greater, as proposed herein, to the NOM 
Market Operations staff to select this risk control. If a NOM Market 
Maker does not desire to utilize the Percentage-Based risk control 
the NOM Market Maker must utilize the Volume-Based risk control 
which is similarly set-up by contacting Market Operations and 
providing certain settings.
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    By way of example, if a NOM Market Maker has set the percentage 
setting to 50% and a Specified Time Period of 15 seconds and the Order 
Book reflects:
    MM1 has a displayed quote of 1.10 (100) x 1.20 (100) for IBM May 
20, 2016 70 puts and MM1 is the only displayed size on NOM and an order 
is submitted to buy 75 IBM May 20, 2016 70 Puts for 1.20.
    Chapter VII, Section 6(f) would cause the following:
    (1) Provide MM1 with an execution--Sold 75 @ 1.20; and
    (2) Trigger the Percentage-Based Threshold and remove MM1's quotes 
in IBM.
    Another example is with multiple executions. Presume the following:
    MM1 has set the percentage to 80% by 5 seconds and MM1 has a 
displayed quote of 2.00 (100) x 2.25 (100) for IBM May 20, 2016 70 puts 
and he is the only displayed size on the NOM. Also, presume an order 
comes in to buy 50 IBM May 20, 2016 70 puts for 2.25.
    Chapter VII, Section 6(f) would cause the following:
    (1) Provide MM1 with an execution--Sold 50 @ 2.25;
    (2) Update MMI [sic] quote to 2.00 (100) x 2.25 (50);
    (3) Within 1 second an order comes in to buy 45 IBM May 20, 2016 70 
puts for 2.25;
    (4) Provide MM1 with an execution--Sold 45 @ 2.25; and
    (5) Trigger the Percentage-Based Threshold and remove MM1's quotes 
in IBM.
    The Exchange also proposes to replace the term ``disseminated 
size'' with a quantitative description to add transparency with respect 
to the calculation of Series Percentage. The language proposed amends 
the original definition of disseminated size. With respect to the 
disseminated size, the Exchange previously defined disseminated size as 
``. . . the original size quoted by the Participant.'' \7\
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    \7\ See note 4 above.
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    The Exchange proposes to amend the definition as follows: ``For 
each series in an option, the System will determine: (i) The percentage 
that the number of contracts executed in that series represents 
relative to the number of contracts available at the time of execution 
plus the number of contracts executed in unexpired prior executions of 
each side in that series (``Series Percentage''); and (ii) the sum of 
the Series Percentage in the option issue (``Issue Percentage'').'' The 
Exchange counts Specialized Quote Feed (``SQF'') \8\ quotes and OUCH To 
Trade Options (``OTTO'') \9\ orders only in determining the number of 
contracts traded and removed by the System. OTTO orders are single 
sided and may be submitted at multiple price levels for each series, 
whereas SQF permits a two-sided quote for each NOM Market Maker. The 
calculation considers the different price levels.
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    \8\ SQF permits the receipt of quotes. SQF Auction Responses and 
market sweeps are also not included.
    \9\ 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. All NOM Participants have the ability to utilize OTTO. 
OTTO immediate or cancel orders will not be included.
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    By way of example, with the proposed definition, if a NOM Market 
Maker with a Percentage-Based Specified Time Period of 10 seconds and a 
Specified Percentage of 100% submits a quote over SQF of 1.00(100) x 
1.10(100) and a buy order executes 75, the remaining size would be 
1.00(100) x 1.10(25). Thereafter a new Percentage-Based Specified Time 
Period begins and current Series Percentage executed is 75 and three 
seconds pass and the NOM Market Maker re-quotes 1.00(100) x 1.10 (100), 
an incoming buy order of 43 would cause the Issue Percentage to meet 
the Percentage-Based Threshold. This is due to a counted size of 175 
(the executed 75 plus the newly quoted 100) and rounding (0.75 + 43/175 
= 0.9957 rounds up to 100%). If the former definition applied, the size 
would have been 100 and an execution of only 25 contracts on the same 
side would have caused the Issue Percentage to meet the Percentage-
Based Threshold, which is not the case. In other words, the current SQF 
quote and all OTTO orders on that side for that series (for that NOM 
Market Maker) in addition to all the executions that have occurred on 
that side for that series (for that NOM Market Maker) within the 
Percentage-Based Specified Time Period would comprise the size.
    This new definition accurately represents the manner in which the 
Issue Percentage is calculated. Also, the more precise language within 
the rule text will provide NOM Market Makers with a more accurate 
description of the operation of this risk mechanism. The Exchange has 
always calculated the NOM Market Maker's size in this fashion. The 
definition, as described in the prior rule change, was not accurate and 
the Exchange seeks to amend the definition with this proposal and 
memorialize the definition within the rule.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \10\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \11\ in particular, in that it is designed to 
promote just and equitable principles of

[[Page 46149]]

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 offering NOM Market Makers the 
ability to better manage their own risk with this risk feature.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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    NOM Market Makers are obligated to submit continuous two-sided 
quotations in a certain number of series in their appointed option 
classes for a certain percentage of each trading session.\12\ This 
obligation renders them vulnerable to risk from unusual market 
condition, volatility in specific options, and other market events that 
may cause them to receive multiple, extremely rapid automatic 
executions before they can adjust their quotations and overall risk 
exposure in the market. Without adequate risk management tools in place 
on the Exchange, the incentive for NOM Market Makers to quote 
aggressively, respecting both price and size could be diminished. Such 
a result may undermine the quality of the markets, which are enhanced 
by the depth and liquidity such NOM Market Makers provide in the 
marketplace.
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    \12\ 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 5.
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    By allowing the Specified Percentage provided by the NOM Market 
Maker to be reduced from 100% to 1%, the Exchange provides its NOM 
Market Makers the desired flexibility to take into account such factors 
as present and anticipated market conditions, news in an option or 
sudden change in volatility of an option without any limitation 
regarding the Specified Percentage. This should encourage NOM Market 
Makers to provide additional depth and liquidity to the Exchange's 
markets, thereby removing impediments to and perfecting the mechanisms 
of a free and open market and a national market system and, in general, 
protecting investors and the public interest.
    The proposal is consistent with the Act because the reduction of 
the Specified Percentage to not less than 1% provides more alternatives 
to NOM Market Makers in setting their percentage without impacting 
their firm quote obligations. The System operates consistently with the 
firm quote obligations of a broker-dealer pursuant to Rule 602 of 
Regulation NMS. Specifically, with respect to NOM Market Makers, their 
obligation to provide continuous two-sided quotes on a daily basis is 
not diminished by the removal of such quotes and orders by the 
Percentage-Based Threshold. NOM Market Makers are required to provide 
continuous two-sided quotes on a daily basis.\13\ NOM Market Makers 
that utilize the Percentage-Based Threshold will not be relieved of the 
obligation to provide continuous two-sided quotes on a daily basis, nor 
will the change prohibit the Exchange from taking disciplinary action 
against a NOM Market Maker for failing to meet the continuous quoting 
obligation each trading day. All quotes entered into the System are 
considered firm. Quotes will only be removed from the System once the 
Percentage-Based Threshold has been met if the quote was not otherwise 
executed by an incoming order.
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    \13\ Id.
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    This risk feature will continue to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system and protect investors and the public interest by allowing NOM 
Market Makers to remove their quotes and orders in the event that 
market conditions warrant, based on their own risk tolerance level. NOM 
Market Makers provide liquidity to the market place and have 
obligations unlike other market participants.\14\ This risk feature is 
important because it will enable NOM Market Makers to manage their 
exposure at the Exchange. Further, permitting NOM Market Makers to 
enter a broader setting would continue to allow NOM Market Makers to 
have flexibility in setting their risk exposure to prevent unintended 
triggers of the Percentage-Based Threshold. This proposal continues to 
allow NOM Market Makers to select a Percentage-Based Specified Time 
Period. Each NOM Market Maker has different levels of sensitivity and 
its own system safeguards as well. The proposed setting would permit 
each NOM Market Maker to select a setting that is appropriate to 
capture the needs of that NOM Market Maker.
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    \14\ Id.
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    Further, it is important to note that any interest that is 
executable against a NOM Market Maker's quotes and orders that are 
received \15\ by the Exchange prior to the trigger of the Percentage-
Based Threshold, which is processed by the System, automatically 
executes at a price up to the NOM Market Maker's size. The system-
generated Purge Notification Message is accepted by the System in the 
order of receipt in the queue and is processed in that order so that 
interest that is already accepted into the System is processed prior to 
the message. Incoming orders received prior to the Purge Notification 
Message would not be cancelled, rather they be [sic] executed at a 
price up to the NOM Market Maker's size.
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    \15\ The time of receipt for an order or quote is the time such 
message is processed by the Exchange book.
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    The Exchange notes that Miami International Securities Exchange, 
LLC (``MIAX'') implemented a rule that changed its Allowable Engagement 
Percentage from a minimum of 100% to any percentage established by the 
Market Maker.\16\ The NOM rule is similar to MIAX's in that a member is 
required to have a setting, although MIAX has a default setting in 
place in the instance that no percentage is provided. NOM Market Makers 
that select the Percentage-Based risk tool must provide the Exchange 
with a Percentage-Based Specified Time Period greater than or equal to 
1%. [sic] Amending the definition of disseminated size will provide 
market participants with greater information on the manner in which the 
Exchange computes the Issue Percentage. The Exchange believes that the 
manner in which the Exchange calculates the number of contracts, which 
are counted for the Issue Percentage, is consistent with the Act. The 
counting method permits the Exchange to update the reference number to 
include the executed contracts. While this method differs from the 
method previously described, the Exchange believes that there is no 
industry standard for counting and its method permits market 
participants to achieve the desire [sic] risk protection. With the 
proposed definition, each execution uses the Percentage-Based Specified 
Time Period that existed at the time of the execution. NOM Market 
Makers can change the Percentage-Based Specified Time Period at any 
time. If a NOM Market Maker is using a Percentage-Based Specified Time 
Period of 15 seconds when an execution happens, then changes the 
Percentage-Based Specified Time Period to half a second, that first 
execution will not expire until 15 seconds have passed. The selected 
Percentage-Based Specified Time Period will persist for 15 seconds and 
the number of executed contracts will be included in the denominator of 
subsequent executions for a full 15 seconds.
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    \16\ See Securities Exchange Act Release No. 77817 (May 12, 
2016), 81 FR 31286 (May 18, 2016) (SR-MIAX-2016-10).

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[[Page 46150]]

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Percentage-Based Threshold 
is intended to protect NOM Market Makers from exposure to excessive 
risk. The Exchange believes this proposal will foster competition by 
providing NOM Market Makers with the ability to enhance and customize 
their percentage in order to compete for executions and order flow. 
Specifically, the proposal does 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.\17\ NOM Market Makers quote 
across many series in an option creating the possibility of ``rapid 
fire'' executions that can create large, unintended principal positions 
that expose NOM Market Makers. The Percentage-Based Threshold permits 
NOM Market Makers to monitor risk arising from multiple executions 
across multiple options series of a single underlying security.
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    \17\ See Section 8 of the 19b4.
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    The Exchange is proposing this rule change to continue to permit 
NOM Market Makers to reduce their risk in the event the NOM Market 
Maker is suffering from a system issue or due to the occurrence of 
unusual or unexpected market activity. 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. Reducing 
risk by utilizing the proposed risk protections enables NOM Market 
Makers, specifically, 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.
    The Exchange believes that amending the definition of disseminated 
size does not create an undue burden on competition because the 
Exchange will uniformly calculate the Percentage-Based Threshold in a 
uniform manner for all NOM Market Makers. The Exchange is memorializing 
the definition within the Rule.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \18\ and Rule 19b-
4(f)(6) thereunder.\19\ The Exchange has requested that the Commission 
waive the thirty-day operative delay so that the proposal may become 
operative immediately. The Commission believes that waiving the thirty-
day operative delay is consistent with the protection of investors and 
the public interest. The Exchange proposes to change a setting in an 
existing risk protection feature to enhance market makers' ability to 
protect against excessive risk arising from multiple executions across 
multiple options series of a single underlying security. The Commission 
notes that another options exchange currently has a similar setting for 
a like risk protection feature for market makers. Moreover, the 
Commission notes that the proposal to replace the term ``disseminated 
size'' with an accurate and more precise description would add 
transparency with respect to the operation of the risk protection 
feature. Therefore, the Commission hereby waives the thirty-day 
operative delay and designates the proposal operative upon filing.\20\
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    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 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, along 
with a brief description and the text of the proposed rule change, 
at least five business days prior to the date of filing of the 
proposed rule change, or such shorter time as designated by the 
Commission. The Exchange has satisfied this requirement.
    \20\ 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 necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NASDAQ-2016-087 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-2016-087. 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-2016-087 and should 
be submitted on or before August 5, 2016.


[[Page 46151]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-16724 Filed 7-14-16; 8:45 am]
 BILLING CODE 8011-01-P