[Federal Register Volume 84, Number 121 (Monday, June 24, 2019)]
[Notices]
[Pages 29551-29552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13308]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86132; File No. SR-MRX-2019-11]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Make Non-
Substantive, Clarifying Changes to Options 7
June 18, 2019.
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 5, 2019, Nasdaq MRX, LLC (``MRX'' 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.
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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 make non-substantive, clarifying changes
to Options 7, as described further below.
The text of the proposed rule change is available on the Exchange's
website at http://nasdaqmrx.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 proposed rule change is to make non-substantive
clarifications to the Exchange's Pricing Schedule in Options 7 to avoid
potential confusion in the Exchange's rules.
First, the Exchange proposes to remove an obsolete reference to its
old website in its Options 7, Section 1. The definition of ``Penny
Symbols'' presently states that the current list of Nasdaq MRX-listed
Penny Pilot Program symbols is available at http://www.ise.com/assets/files/products/productstraded/options_product_equityDownload.csv. Now
that the legacy website is no longer available, the Exchange proposes
to delete this sentence from the definition of Penny Symbols.
Second, the Exchange proposes to add references to average daily
volume (``ADV'') to certain pricing for Price Improvement Mechanism
(``PIM'') orders set forth in Options 7, Section 3, Table 2.
Specifically, the Exchange proposes to clarify that the current volume
threshold requirements for the reduced contra-side Fee for Crossing
Orders \3\ of $0.02 per contract in all symbols and the rebate for
originating Priority Customer \4\ PIM orders of $1.05 in Non-Penny
Symbols are each ADV calculations. Although the Exchange has always
calculated these volume thresholds based on executed ADV of PIM
originating contracts, the Exchange believes that explicitly adding the
word ``ADV'' to this rule will avoid any possible confusion among
members.\5\ The Exchange also proposes to delete the words ``per day''
in each place it proposes to add ``ADV'' to avoid redundancy.
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\3\ A ``Crossing Order'' is an order executed in the Exchange's
Facilitation Mechanism, Solicited Order Mechanism, PIM or submitted
as a Qualified Contingent Cross order. For purposes of this Pricing
Schedule, orders executed in the Block Order Mechanism are also
considered Crossing Orders.
\4\ A ``Priority Customer'' is a person or entity that is not a
broker/dealer in securities, and does not place more than 390 orders
in listed options per day on average during a calendar month for its
own beneficial account(s), as defined in Nasdaq MRX Rule
100(a)(37A).
\5\ In the filing to adopt the PIM pricing and related volume
thresholds, the Exchange stated that the reduced PIM fee is
calculated by averaging volume across the month per business day.
See Securities Exchange Act Release No. 85313 (March 14, 2019), 84
FR 10357 (March 20, 2019) (SR-MRX-2019-05). The Exchange notes that
the higher PIM rebate, which is based on the same volume threshold
as reduced the PIM fee, is calculated in the same manner.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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As discussed above, the Exchange seeks to make non-substantive
changes to Options 7 by removing obsolete references to its legacy
website and specifying that certain PIM pricing is based on ADV
calculations. The Exchange believes that the proposed changes herein
will add further clarification to its Pricing Schedule, and will also
alleviate potential confusion as to the applicability of the Exchange's
rules, all of which will protect investors and the public interest.
Furthermore, as
[[Page 29552]]
it relates to the clarifications proposed above for PIM pricing in
Options 7, Section 3, Table 2, to add ``ADV'' and relatedly, delete
``per day,'' the Exchange notes that this is not a change to its
current practice, but is a simple clean up change to make the Pricing
Schedule easier for members to understand.\8\ For the foregoing
reasons, the Exchange believes that its proposal is consistent with the
Act.
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\8\ See supra note 5.
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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 discussed above, the
proposed changes are non-substantive changes, and are merely intended
add further clarification to the Exchange's Pricing Schedule and
alleviate potential confusion.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-MRX-2019-11 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-MRX-2019-11. 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 (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 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-MRX-2019-11 and should be submitted on
or before July 15, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019-13308 Filed 6-21-19; 8:45 am]
BILLING CODE 8011-01-P