[Federal Register Volume 85, Number 41 (Monday, March 2, 2020)]
[Notices]
[Pages 12360-12362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04184]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88282; File No. SR-NASDAQ-2020-010]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend General 9, Section 1, Titled General Standards
February 25, 2020.
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 February 19, 2020, The Nasdaq Stock Market LLC (``Nasdaq'' 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 General 9, Section 1, titled
``General Standards.''
The text of the proposed rule change is available on the Exchange's
website at http://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at
[[Page 12361]]
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 recently relocated Nasdaq rules, including The Nasdaq
Options Market LLC (``NOM'') rules, into a new Rulebook shell.\3\ In
relocating the Nasdaq Rulebook, IM-2110-3 titled, ``Front Running
Policy'' was inadvertently deleted and not relocated. IM-2110-3
provided, ``Nasdaq members and persons associated with a member shall
comply with NASD Interpretive Material 2110-3 as if such Rule were part
of Nasdaq's rules.''
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\3\ See Securities Exchange Act Release No. 87778 (December 17,
2019), 84 FR 70590 (December 23, 2019) (SR-NASDAQ-2019-098).
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This rule should have been relocated to General 9, Section 1(c),
similar to the manner in which an identical rule was relocated into the
Nasdaq BX, Inc. (``BX'') Rulebook.\4\ At this time, the Exchange
proposes to relocate this rule into General 9, Section 1(c) similar to
BX. The Exchange is not amending IM-2110-3 in any way. The Exchange is
correcting its rules by adding IM-2110-3 back into the Nasdaq Rulebook
into the same location as an identical rule is located within the BX
Rules. The Exchange also proposes to re-letter the current rule to
accommodate the addition of this rule.\5\
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\4\ See Securities Exchange Act Release No. 87468 (November 5,
2019), 84 FR 61091 (November 12, 2019) (SR-BX-2019-039).
\5\ The Exchange will also separately file another rule change
to amend other NASD Rule references to the FINRA Rulebook.
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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 and to protect investors and the
public interest by correcting its rules by adding IM-2110-3 back into
the Nasdaq Rulebook. The deletion of this rule was inadvertent. The
Exchange did not intend to remove this rule which addresses the
Exchange's front running policy. The Exchange's proposal is consistent
with the Act and will protect investors and the public interest by
adding back a front running policy into its Rules that was
inadvertently deleted. The front running policy is applicable to all
members. The Exchange is not amending IM-2110-3 in any way. The
Exchange is correcting its rules by adding IM-2110-3 back into the
Nasdaq Rulebook into the same location as an identical rule is located
within the BX Rules.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(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. The Exchange believes that
restoring IM-2110-3 in the Nasdaq Rules does not impose an undue burden
on competition because the rule previously existed and is simply being
relocated into the new Rulebook as originally intended.
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 \8\ and Rule 19b-
4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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 satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \10\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \11\ 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 may immediately add an inadvertently deleted rule
back into the Exchange rulebook and ensure continued compliance of the
rule by Exchange members. The Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and
the public interest. Accordingly, the Commission waives the 30-day
operative delay and designates the proposed rule change as operative
upon filing.\12\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ For purposes only of waiving the 30-day operative delay,
the Commission also 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-2020-010 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.
[[Page 12362]]
All submissions should refer to File Number SR-NASDAQ-2020-010. 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-NASDAQ-2020-010 and should be submitted
on or before March 23, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
J. Matthew DeLesDernier,
Assistant Secretary.
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\13\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2020-04184 Filed 2-28-20; 8:45 am]
BILLING CODE 8011-01-P