[Federal Register Volume 84, Number 220 (Thursday, November 14, 2019)]
[Notices]
[Pages 61956-61958]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24695]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87487; File No. SR-BX-2019-040]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 4759
November 7, 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 October 29, 2019, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``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 Rule 4759, as described below. While
these amendments are effective upon filing, the Exchange has designated
the proposed amendments to be operative on November 4, 2019.
The text of the proposed rule change is available on the Exchange's
website at http://nasdaqbx.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 Rule 4759, which lists the
proprietary
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and network processor feeds that the Exchange utilizes for the
handling, routing, and execution of orders, as well as for the
regulatory compliance processes related to those functions. Presently,
the Exchange's trading system utilizes proprietary market data as the
Primary Source of quotation data for the following markets that provide
a reliable direct feed: NYSE American, Nasdaq BX, CBOE EDGA, CBOE EDGX,
CHX, NYSE, NYSE Arca, Nasdaq, Nasdaq PSX, CBOE BYX, and CBOE BZX. For
each of these markets, the Exchange uses SIP data as the Secondary
Source of quotation data.\3\ For other markets, namely NYSE National,
FINRA ADF, and IEX, the Exchange utilizes SIP data as the Primary
Source; there is no Secondary Source for those markets. The Exchange
proposes to amend Rule 4759 to state that going forward, the Exchange
will utilize SIP data, rather than a direct feed, as its Primary Source
of data for CHX (now known as NYSE Chicago \4\), with no Secondary
Source utilized for that data. The Exchange proposes this amendment to
reflect the fact that NYSE Chicago is migrating to a new technology
platform and that, after November 1, 2019, it has announced that it
will cease offering the NYSE Chicago Book Feed that currently serves as
its direct feed to the Exchange.\5\ Although the Exchange understands
that NYSE Chicago plans to offer new data feeds to replace the NYSE
Chicago Book Feed, the Exchange has yet to decide whether it will
utilize them.\6\
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\3\ Pursuant to Rule 4759, the Primary Source of data is used
unless it is delayed by a configurable amount compared to the
Secondary Source of data. The Exchange reverts to the Primary Source
of data once the delay has been resolved.
\4\ The Exchange also proposes to update the Rule to reflect the
fact that the Chicago Stock Exchange is now known as NYSE Chicago.
\5\ See https://www.nyse.com/market-data/real-time#chicago.
\6\ See id. If and when the Exchange decides to subscribe to
these replacement NYSE Chicago direct data feed products, the
Exchange will file a proposal to amend Rule 4759 accordingly.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\8\ 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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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that it is necessary to amend its Rules to
account for the fact that, after November 1, 2019, NYSE Chicago will no
longer offer the direct feed to which the Exchange currently
subscribes. The Exchange notes that it already utilizes the SIP as its
sole source of quote data for NYSE National and IEX--as well as the
FINRA ADF, without issue. In the event that the Exchange determines
that its proposal to utilize SIP data is inadequate for its purposes,
then the Exchange may choose to subscribe to one or more of the
replacement proprietary data feeds that NYSE Chicago plans to offer
beginning on November 4, 2019.
Lastly, the Exchange believes that it is consistent with the public
interest and the protection of investors to update the names of the
exchanges listed in Rule 4759 as this change will make it easier for
market participants to identify the exchanges for which the Exchange
uses the direct feed and/or SIP for the purposes described in the Rule.
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 proposed rule change is not
designed to address any competitive issue; instead, it is merely
intended to reflect the fact that the Exchange will no longer consume
the NYSE Chicago Book Feed, which NYSE Chicago plans to discontinue
after November 1, 2019. The Exchange does not expect that its decision
to utilize the SIP, going forward, to obtain NYSE Chicago quote data
will have any competitive impacts. As noted above, the Exchange
presently utilizes the SIP as its sole source of quote data for several
other exchanges, including NYSE National and IEX.
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 \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
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 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 requested that the Commission waive the pre-filing
requirement. The Commission hereby waives that requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative for 30 days from the date of filing. However,
Rule 19b-4(f)(6)(iii) \12\ permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay so that the Exchange can
amend Rule 4759 prior to the discontinuation of the NYSE Chicago Book
Feed. The Exchange states that waiver of the operative delay would
prevent Rule 4759 from being inaccurate and causing confusion among
investors and the public. For these reasons, the Commission believes
that waiver of the 30-day operative delay is consistent with the
protection of investors and the public interest. Accordingly, the
Commission hereby waives the 30-day operative delay and designates the
proposed rule change operative upon filing.\13\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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:
[[Page 61958]]
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-BX-2019-040 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-2019-040. 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-BX-2019-040 and should be submitted on
or before December 5, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-24695 Filed 11-13-19; 8:45 am]
BILLING CODE 8011-01-P