[Federal Register Volume 83, Number 28 (Friday, February 9, 2018)]
[Notices]
[Pages 5822-5823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-02568]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82629; File No. SR-NASDAQ-2017-074]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Designation of Longer Period for Commission Action on 
Proceedings To Determine Whether To Approve or Disapprove a Proposed 
Rule Change, as Modified by Amendment Nos. 1 and 2, To Adopt the 
Midpoint Extended Life Order

February 5, 2018.
    On July 21, 2017, The Nasdaq Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to adopt the Midpoint Extended Life Order 
(``MELO''). The proposed rule change was published for comment in the 
Federal Register on August 9, 2017.\3\ On August 9, 2017, the Exchange 
filed Amendment No. 1 to the proposed rule change.\4\ On September 21, 
2017,

[[Page 5823]]

pursuant to Section 19(b)(2) of the Act,\5\ the Commission designated a 
longer period within which to approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether to approve or disapprove the proposed rule change.\6\ 
The Commission initially received three comment letters on the proposed 
rule change.\7\ On October 30, 2017, the Exchange filed Amendment No. 2 
to the proposed rule change.\8\ On November 3, 2017, the Commission 
published notice of Amendment No. 2 and instituted proceedings under 
Section 19(b)(2)(B) of the Act \9\ to determine whether to approve or 
disapprove the proposed rule change, as modified by Amendment Nos. 1 
and 2.\10\ The Commission received one additional comment letter on the 
proposed rule change in response to the Order Instituting 
Proceedings.\11\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 81311 (August 3, 
2017), 82 FR 37248.
    \4\ In Amendment No. 1, the Exchange updated the proposal to 
reflect the approval of the proposal by the Exchange's Board of 
Directors on July 21, 2017. Amendment No. 1 is available at https://www.sec.gov/comments/sr-nasdaq-2017-074/nasdaq2017074.htm. Because 
Amendment No. 1 is a technical amendment that does not alter the 
substance of the proposed rule change, it is not subject to notice 
and comment.
    \5\ 15 U.S.C. 78s(b)(2).
    \6\ See Securities Exchange Act Release No. 81668, 82 FR 45095 
(September 27, 2017). The Commission designated November 7, 2017 as 
the date by which the Commission shall approve or disapprove, or 
institute proceedings to determine whether to approve or disapprove, 
the proposed rule change.
    \7\ See Letters to Brent J. Fields, Secretary, Commission, from 
Stephen John Berger, Managing Director, Government & Regulatory 
Policy, Citadel Securities, dated August 30, 2017; Ray Ross, Chief 
Technology Officer, The Clearpool Group, dated September 12, 2017; 
and Joanna Mallers, Secretary, FIA Principal Traders Group, dated 
September 19, 2017.
    \8\ In Amendment No. 2, the Exchange: (1) Modified the proposal 
to prevent MELOs from executing when there is a non-displayed order 
priced more aggressively than the NBBO midpoint resting on the 
Nasdaq book; (2) provided additional description, clarification, and 
rationale for certain aspects of the proposal; and (3) responded to 
several concerns raised by commenters on the proposal. Amendment No. 
2 is available at https://www.sec.gov/comments/sr-nasdaq-2017-074/nasdaq2017074.htm.
    \9\ 15 U.S.C. 78s(b)(2)(B).
    \10\ See Securities Exchange Act Release No. 82013, 82 FR 52075 
(November 9, 2017) (``Order Instituting Proceedings'').
    \11\ See Letter to Brent J. Fields, Secretary, Commission, from 
Edward K. Shin, dated December 8, 2017.
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \12\ provides that, after initiating 
disapproval proceedings, the Commission shall issue an order approving 
or disapproving the proposed rule change not later than 180 days after 
the date of publication of notice of filing of the proposed rule 
change. The Commission may extend the period for issuing an order 
approving or disapproving the proposed rule change, however, by not 
more than 60 days if the Commission determines that a longer period is 
appropriate and publishes the reasons for such determination. In this 
case, the proposed rule change was published for notice and comment in 
the Federal Register on August 9, 2017.\13\ February 5, 2018 is 180 
days from that date. The Commission is extending the time period for 
approving or disapproving the proposal by an additional 30 days.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(2).
    \13\ See supra note 3.
---------------------------------------------------------------------------

    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule change so that it has sufficient time to consider the proposed 
rule change, the issues raised in the comment letters that have been 
submitted in response to the proposed rule change, and the Exchange's 
responses to such comments.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\14\ designates March 7, 2018 as the date by which the Commission 
shall either approve or disapprove the proposed rule change (File No. 
SR-NASDAQ-2017-074), as modified by Amendment Nos. 1 and 2.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-02568 Filed 2-8-18; 8:45 am]
 BILLING CODE 8011-01-P