[Federal Register Volume 86, Number 187 (Thursday, September 30, 2021)]
[Notices]
[Pages 54259-54262]
[FR Doc No: 2021-21210]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93121; File No. SR-BX-2021-040]

Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend BX Options
7, Section 2, BX Options Market-Fees and Rebates

September 24, 2021.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on September 10, 2021, Nasdaq BX, Inc. (``BX'' or
``Exchange'') filed with the Securities and Exchange Commission (the
``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\ 15 U.S.C. 78a.
    \3\ 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 BX Options 7, Section 2, ``BX
Options Market-Fees and Rebates.''
    The Exchange originally filed the proposed pricing changes on
August 27, 2021 (SR-BX-2021-036). On September 10, 2021, the Exchange
withdrew that filing and submitted this filing.
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/bx/rules, 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 BX's Pricing Schedule at Options 7,
Section 2, ``BX Options Market-Fees and Rebates.'' Specifically, within
Options 7, Section 2(1), the Exchange proposes to: (1) Increase the
Non-Penny Symbol Customer Taker Fee; and (2) amend note 3 of that
section that reduces the Non-Penny Symbol Customer Maker Rebate in
certain circumstances.
    Today, Customers are assessed a Non-Penny Symbol Taker Fee of $0.65
per contract for removing liquidity and paid a Non-Penny Symbol Maker
Rebate of $0.90 per contract for adding liquidity. Today, with respect
to the Customer Non-Penny Symbol Maker Rebate, Customer orders receive
a $0.45 per contract Non-Penny Symbol Maker Rebate, instead of the
aforementioned $0.90 per contract rebate, if the quantity of
transactions where the contra-side is also a Customer is greater than
25% of Participant's total Customer Non-Penny Symbol volume which adds
liquidity in that month.\4\
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    \4\ See Options 7, Section 2(1) note 3. The 25% calculation does
not consider orders within the Opening Process per Options 3,
Section 8, orders that generate an order exposure alert per BX
Options 5, Section 4, or orders transacted in the Price Improvement
Auction (``PRISM'') per Options 3, Section 13.
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    The Exchange proposes to increase the Customer Non-Penny Symbol
Taker Fee from $0.65 to $0.79 per contract. The Exchange also proposes
to amend the percentage within note 3, related to the quantity of
transactions where the contra-side is also a Customer, from 25% to 50%.
Proposed note 3 would provide, ``Customer orders will receive a $0.45
per contract Non-Penny Symbol Maker Rebate if the quantity of
transactions where the contra-side is also a Customer is greater than
50% of

Participant's total Customer Non-Penny Symbol volume which adds
liquidity in that month. The aforementioned calculation of 50% will not
consider orders within the Opening Process per Options 3, Section 8,
orders that generate an order exposure alert per BX Options 5, Section
4, or orders transacted in the Price Improvement Auction (``PRISM'')
per Options 3, Section 13.''
    The Exchange would continue to pay a Customer Non-Penny Symbol
Maker Rebate of $0.90 per contract. Also, the Exchange would continue
to pay the lower Non-Penny Symbol Maker Rebate of $0.45 per contract if
the quantity of transactions where the contra-side is also a Customer
is greater than the proposed 50% of Participant's total Customer Non-
Penny Symbol volume which adds liquidity in that month.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among members and issuers and other persons using any facility,
and is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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    \5\ 15 U.S.C. 78 f(b).
    \6\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange's proposed changes to its Pricing Schedule are
reasonable in several respects. As a threshold matter, the Exchange is
subject to significant competitive forces in the market for options
securities transaction services that constrain its pricing
determinations in that market. The fact that this market is competitive
has long been recognized by the courts. In NetCoalition v. Securities
and Exchange Commission, the D.C. Circuit stated as follows: ``[n]o one
disputes that competition for order flow is `fierce.' . . . As the SEC
explained, `[i]n the U.S. national market system, buyers and sellers of
securities, and the broker-dealers that act as their order-routing
agents, have a wide range of choices of where to route orders for
execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . . .'' \7\
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    \7\ NetCoalition v. SEC, 615 F.3d 525, 539 (DC Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
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    The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \8\
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    \8\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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    Numerous indicia demonstrate the competitive nature of this market.
For example, clear substitutes to the Exchange exist in the market for
options security transaction services. The Exchange is only one of
sixteen options exchanges to which market participants may direct their
order flow. Within this environment, market participants can freely and
often do shift their order flow among the Exchange and competing venues
in response to changes in their respective pricing schedules. As such,
the proposal represents a reasonable attempt by the Exchange to
increase its liquidity and market share relative to its competitors.
    The Exchange's proposal to increase the Customer Non-Penny Symbol
Taker Fee from $0.65 to $0.79 per contract is reasonable. While the
Exchange's Customer Non-Penny Symbol Taker Fee is increasing, the
Exchange believes its fees remain competitive with other options
exchanges.\9\ Also, BX continues to offer the highest base rebate of
$0.90 per contract prior to taking into account volume or contra-
party.\10\ Of note, other exchanges have higher simple order rebates,
provided certain volume criteria are met.\11\ Accordingly, the Exchange
believes that the proposed Customer Non-Penny Symbol Taker Fee remains
competitive and will continue to attract order flow to BX to the
benefit of all market participants.
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    \9\ NYSE Arca, Inc. (``NYSEArca Options Fees'') currently
assesses customers a Take Liquidity fee of $0.85 per contract in
Non-Penny Issues (or $0.67 per contract if the Customer is trading
against a lead market maker). See NYSEArca Options Fees and Charges,
Transaction Fee for Electronic Executions--Per Contract.
    \10\ The examples which follow represent options fees. BOX
Exchange LLC (``BOX'') pays no Non-Penny Interval Class Public
customer Maker Rebate. See BOX's Fee Schedule at Section I, A. Cboe
Exchange, Inc. (``Cboe'') pays a Non-Penny Class rebate to customers
of $0.18 per contract only if the original order is greater than or
equal to 100 contracts and removes liquidity. See Cboe's Fee
Schedule. Cboe C2 Exchange, Inc. (``C2'') pays a Non-Penny Class
rebate to customers of $0.80 per contract to transactions which add
liquidity. See C2's Fee Schedule. Cboe BZX Exchange, Inc.
(``CboeBZX'') pays Non-Penny Program Securities rebates to customers
which range from $0.85 to $1.06 per contract to transactions which
add liquidity. See CboeBZX's Fee Schedule. Cboe EDGX Exchange, Inc.
(``CboeEDGX'') pays Non-Penny Program Securities rebates to
customers which range from $0.01 to $0.21 based on customer volume
tiers. See CboeEDGX's Fee Schedule. Miami International Securities
Exchange, LLC (``MIAX'') pays no customer rebate for non-penny
classes. See MIAX's Fee Schedule. MIAX PEARL, LLC (``PEARL'') pays
Priority Customer Non-Penny Classes Maker Rebates which range from
$0.85 to $1.04 based on volume. See PEARL's Fee Schedule. MIAX
Emerald, LLC (``EMERALD'') pays Priority Customer Maker Rebates
which range from $0.43 to $0.53, except that SPY, QQQ and IWM
rebates are $0.45 and Priority Customer Simple Order rebates when
contra is an Affiliated Market Maker are $0.49. See EMERALD's Fee
Schedule. NYSEArca pays a Customer a $0.75 rebate to post liquidity
unless contra a lead market maker, in which case no rebate is paid.
See NYSE Arca Options Fees and Charges. NYSE American LLC
(``NYSEAmerican'') pays no Customer rebates. See NYSE American
Options Fee Schedule. The Nasdaq Stock Market LLC (``NOM'') pays an
$0.80 per contract Customer Non-Penny Symbol Rebate and in some
cases $1.00, or $1.05 if other criteria are met. See NOM's Pricing
Schedule. Nasdaq Phlx LLC (``Phlx'') pays Customer Non-Penny rebates
which range from $0.00 to $0.27. See Phlx's Pricing Schedule. Nasdaq
ISE, LLC (`ISE'') pays no Non-Penny Priority Customer rebates. See
ISE's Pricing Schedule. Nasdaq GEMX, LLC (``GEMX'') pays Priority
Customer Non-Penny Symbol Maker Rebates which range from $0.75 to
$1.05. See GEMX's Pricing Schedule. Nasdaq MRX, LLC (`MRX'') pays no
Priority Customer Non-Penny Symbol rebates. See MRX's Pricing
Schedule.
    \11\ Id.
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    The Exchange's proposal to increase the Customer Non-Penny Symbol
Taker Fee from $0.65 to $0.79 per contract is equitable and not
unfairly discriminatory because the proposed pricing will apply
uniformly to all similarly situated Participants for Non-Penny Symbols.
Customers would continue to receive favorable pricing as compared to
other market participants because Customer liquidity enhances liquidity
on the Exchange for the benefit of all market participants.
Specifically, Customer liquidity benefits all market participants by
providing more trading opportunities which attracts market makers. An
increase in the activity of these market participants (particularly in
response to pricing) in turn facilitates tighter spreads which may
cause an additional corresponding increase in order flow from other
market participants.
    The Exchange's proposal to amend the percentage within note 3
related to the volume consideration for the ratio of Customer to
Customer orders as compared to total Participant volume which adds Non-
Penny Symbol liquidity in order to receive the $0.90 per contract
Customer Non-Penny Symbol rebate as compared to the reduced $0.45 per
contract rebate is

reasonable. With this proposal, the Exchange would assess a $0.79 per
contract Customer Non-Penny Taker Fee, the lowest BX Taker Fee for Non-
Penny Symbols,\12\ and, currently, the Exchange pays the highest
Customer Maker Rebate of $0.90 per contract that does not consider
volume or contra-party. The Exchange continues to offer Customers the
highest Non-Penny Maker Rebate on BX by assessing higher Non-Penny
Taker Fees to Non-Customers.\13\ To the extent a Participant submits a
Non-Penny Customer order to add liquidity which interacts with a Non-
Penny Customer order that removes liquidity, both Participants benefit
from the higher Non-Penny Maker Rebate and lower Non-Penny Taker Fee.
The Exchange's intention for assessing Customer orders with the reduced
Non-Penny Taker Fee was designed to bolster interaction with Non-
Customer participants. Today, Non-Penny Customer orders which add
liquidity have priority \14\ ahead of Non-Penny Non-Customer orders
and, therefore, the Exchange's intention to enhance Non-Customer
liquidity is subverted when a Non-Penny Customer order transacts with
another Non-Penny Customer order. As a result, when Non-Penny Customers
interact with other Non-Penny Customer orders more than by
happenstance, the Exchange believes it is reasonable to pay Customer
orders which add liquidity a lower rebate. The Exchange notes that
Participants do occasionally submit Non-Penny Customer orders which add
liquidity in Non-Penny Symbols to the order book that trade against
Non-Penny Customer orders that remove liquidity in Non-Penny Symbols.
The Exchange believes that type of behavior occurs, by happenstance, a
small percentage of the time in a month. The Exchange initially
determined that 25% was the proper percentage which represented the
quantity of transactions that would demarcate the point at which a
Participant should receive the lower Customer Non-Penny Symbol Maker
Rebate of $0.45 per contract because it does not believe that the type
of behavior outlined herein should occur more than a certain percentage
of the time (in this case 25% of a Participant's total Customer Non-
Penny Symbol volume) unless the trading behavior was intended. After
reviewing the trading behavior for a period of time since the adoption
of the 25% threshold, the Exchange believes that a percentage of 50%
would be a more accurate demarcation. The Exchange has monitored
Customer to Customer trading behavior transacted on BX since the
inception of the 25% threshold. The Exchange believes that the addition
of the threshold deterred certain intended Customer to Customer
transactions, and the Exchange observed an expansion of counter parties
on Customer to Customer trades after the threshold was introduced. The
Exchange believes that increasing the percentage to 50% will more
reasonably account for inadvertent Customer to Customer trades while
still deterring those Customer to Customer transactions which occur
more than by happenstance given the number of Non-Penny Symbol Customer
to Customer orders transacted on BX.
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    \12\ Non-Customer orders are assessed a $1.10 Non-Penny Symbol
Taker Fee.
    \13\ A Non-Customer includes a Professional, Broker-Dealer and
Non-BX Options Market Maker. See BX Options 7, Section 1.
    \14\ See Options 3, Section 10.
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    While this proposal would continue to provide Customer orders with
lower rebates if they transact the requisite number of Customer-to
Customer trades, the Exchange continues to believe that the $0.45 per
contract rebate remains competitive and equal to or greater than the
rebates that other Participants are afforded.\15\
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    \15\ Today, Lead Market Makers are paid $0.45 per contract Non-
Penny Symbol Maker Rebates and Market Maker are paid $0.40 per
contract Non-Penny Symbol Maker Rebates. Firms and Non-Customers are
not eligible for Non-Penny Symbol Maker Rebates and instead are
charged a Maker Fee of $0.45 per contract.
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    The Exchange's proposal to amend the percentage within note 3
related to the volume consideration for the ratio of Customer to
Customer orders as compared to total Participant volume which adds Non-
Penny Symbol liquidity in order to receive the $0.90 per contract
Customer Non-Penny Symbol rebate as compared to the reduced $0.45 per
contract rebate is equitable and not unfairly discriminatory. The
Exchange would uniformly apply the criteria to all Customer orders to
determine the applicable rebate.

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.
Inter-market Competition
    The proposal does not impose an undue burden on inter-market
competition. The Exchange believes its proposal remains competitive
with other options markets and will offer market participants with
another choice of where to transact options. The Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
options exchanges. Because competitors are free to modify their own
fees in response, and because market participants may readily adjust
their order routing practices, the Exchange believes that the degree to
which fee changes in this market may impose any burden on competition
is extremely limited.
Intra-Market Competition
    The Exchange's proposal to increase the Customer Non-Penny Symbol
Taker Fee from $0.65 to $0.79 per contract does not impose an undue
burden on competition because the proposed pricing will apply uniformly
to all similarly situated Participants for Non-Penny Symbols. Customers
would continue to receive favorable pricing as compared to other market
participants because Customer liquidity enhances liquidity on the
Exchange for the benefit of all market participants. Specifically,
Customer liquidity benefits all market participants by providing more
trading opportunities which attracts market makers. An increase in the
activity of these market participants (particularly in response to
pricing) in turn facilitates tighter spreads which may cause an
additional corresponding increase in order flow from other market
participants.
    The Exchange's proposal to pay a $0.45 per contract Customer Non-
Penny Symbol Maker Rebate if the quantity of transactions where the
contra-side is also a Customer is greater than 50% of Participant's
total Customer Non-Penny Symbol volume which adds liquidity \16\ in
that month does not impose an undue burden on competition as the
Exchange would uniformly apply the criteria to all Customer orders to
determine the applicable rebate.
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    \16\ As proposed, the 25% calculation will not consider orders
within the Opening Process per Options 3, Section 8, orders that
generate an order exposure alert per BX Options 5, Section 4, or
orders transacted in the Price Improvement Auction (``PRISM'') per
Options 3, Section 13.

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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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\17\
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    \17\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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_ADDRESS>Please include
File Number SR-BX-2021-040 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-2021-040. 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-2021-040, and should be submitted on
or before October 21, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-21210 Filed 9-29-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 123 (Friday, June 26, 2015)]
[Notices]
[Pages 36865-36867]
[FR Doc No: 2015-15686]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75252; File No. SR-NASDAQ-2015-024]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Amendment No. 1 and Order Granting Accelerated
Approval of Proposed Rule Change, as Modified by Amendment No. 1, To
Amend and Restate Certain Nasdaq Rules That Govern the Nasdaq Market
Center

June 22, 2015.

 I. Introduction

    On March 16, 2015, The NASDAQ Stock Market LLC (``Nasdaq'' or the
``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 amend and restate certain Nasdaq rules that
govern the Nasdaq Market Center in order to provide a clearer and more
detailed description of certain aspects of its functionality. The
proposed rule change was published for comment in the Federal Register
on March 26, 2015.\3\ The Commission received no comment letters
regarding the proposed rule change. On May 6, 2015, the Commission
extended to June 24, 2015, the time period in which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether the proposed rule change should be
disapproved.\4\ On June 15, 2015, the Exchange filed Amendment No. 1 to
the proposed rule change.\5\ This order approves the proposed rule
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 74558 (March 20,
2015), 80 FR 16050 (``Notice'').
    \4\ See Securities Exchange Act Release No. 74881, 80 FR 27216
(May 12, 2015).
    \5\ In Amendment No. 1, the Exchange proposed to correct
typographical errors in the original filing, further improve the
clarity of certain rule language, and include additional explanation
with regard to the purpose of the proposed rule change.
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II. Description of the Amended Proposal

    The Exchange proposes to amend and restate certain rules governing
the Nasdaq Market Center in order to provide additional detail and
clarity regarding its order type functionality.\6\ This proposed rule
change is a response to Chair White's request that each self-regulatory
organization (``SRO'') conduct a comprehensive review of the operation
of each of the order types that it offers to members.\7\
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    \6\ See Notice, 80 FR at 16050.
    \7\ Id.; see also Mary Jo White, Chair, Commission, Speech at
the Sandler O'Neill & Partners, L.P. Global Exchange and Brokerage
Conference (June 5, 2014), available at http://www.sec.gov/News/Speech/Detail/Speech/1370542004312.
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    While the Exchange believes that its current rules and other public
disclosures provide a comprehensive description of the operation of the
Nasdaq Market Center and are sufficient for members and the investing
public to have an accurate understanding of its market structure,\8\ it
also acknowledges that a restatement of certain rules will further
clarify the operation of its system.\9\ For instance, Nasdaq believes
that adding examples of order type operation to its rules will promote
greater understanding of Nasdaq's market structure.\10\ In addition,
Nasdaq asserts that certain functionality previously described as an
``order type'' is more precisely characterized as an attribute that may
be added to a particular order.\11\ Accordingly, this proposed rule
change distinguishes between ``Order Types'' and ``Order Attributes,''
and provides descriptions

of the Order Attributes that may be attached to particular Order
Types.\12\
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    \8\ See Notice, 80 FR at 16050.
    \9\ Id.
    \10\ Id.
    \11\ Id.
    \12\ Id.
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    Currently, Nasdaq Rule 4751 sets forth most of the rules governing
Nasdaq's Order Types and Order Attributes, as well as other defined
terms that pertain to trading securities on the Exchange.\13\ Nasdaq
proposes to restate and amend Rule 4751 as new Rule 4701.\14\ Nasdaq
also proposes to amend the definitions pertaining to Order Types and
Order Attributes and to relocate them from Rule 4751 to new Rules 4702
(Order Types) and 4703 (Order Attributes), respectively.\15\ In
addition, Nasdaq proposes certain conforming and technical changes to
Rules 4752, 4754-4758, and 4780.\16\
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    \13\ See Rule 4751.
    \14\ See proposed Rule 4701.
    \15\ See proposed Rules 4702 and 4703.
    \16\ Nasdaq states that, in subsequent proposed rule changes, it
plans to restate the remainder of its Rules numbered 4752 through
4780 so that they appear sequentially following Rule 4703. See
Notice, 80 FR at 16050.
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    Nasdaq represents that, except where specifically stated otherwise,
all proposed rules are restatements of existing rules and are not
intended to reflect substantive changes to the rule text or the
operation of the Nasdaq Market Center.\17\ Proposed Rule 4702 related
to Order Types contains definitions and descriptions of Price to Comply
Orders, Price to Display Orders (referred to as ``Price to Comply Post
Orders'' in current Rule 4751),\18\ Non-Displayed Orders, Post-Only
Orders, Midpoint Peg Post-Only Orders, Supplemental Orders, Market
Maker Peg Orders, Market on Open Orders, Limit on Open Orders, Opening
Imbalance Only Orders, Market on Close Orders, Limit on Close Orders,
and Imbalance Only Orders. Proposed Rule 4703 related to Order
Attributes contains definitions and descriptions of time-in-force
(``TIF'') modifiers, order size, order price, pegging, minimum
quantity, routing, discretion, reserve size, attribution, intermarket
sweep order (``ISO'') designation, display, and participation in the
Nasdaq opening cross or closing cross.\19\
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    \17\ Id.
    \18\ Id. at 16054 n.29.
    \19\ The Notice contains additional details related to proposed
Rules 4702 and 4703. See Notice, 80 FR at 16051-69.
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    In Amendment No. 1, the Exchange proposes to add language further
explaining the operation of the following order types: Post-Only
Orders; orders with a time-in-force of IOC, including Routable Orders
and Post-Only Orders; Market Maker Peg Orders; orders with Midpoint
Pegging, Primary Pegging or Market Pegging; Midpoint Peg Post-Only
Orders; orders designated with both Pegging and Routing attributes;
Minimum Quantity Orders; and orders designated with a reactive routing
strategy.\20\ For example, the Exchange states that for Order Types
that list both Pegging and Routing as possible Order Attributes, the
two Order Attributes may be combined since Pegging serves to establish
the price of the order, while Routing establishes the market center(s)
to which the system's routing functionality may direct a routed order
if liquidity is available at that price.\21\ The Exchange also proposes
to add further specification regarding the availability of certain
order types only through certain communication protocols.\22\ For
example, the Exchange states that a Post-Only Order with a TIF of IOC
may not be entered through the RASH, QIX, or FIX protocols.\23\ In
addition, the Exchange proposes to add language stating that one or
more Order Attributes may be assigned to a single order, but if the use
of multiple Order Attributes would result in contradictory
instructions, the system will reject the order or remove non-conforming
Order Attributes.\24\

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    \20\ See Amendment No. 1.
    \21\ Id.
    \22\ Id.
    \23\ Id.
    \24\ Id.
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
exchange.\25\ In particular, the Commission finds that the proposed
rule change is consistent with section 6(b)(5) of the Act,\26\ which
requires, among other things, that the rules of a national securities
exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, 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; and are not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \25\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \26\ 15 U.S.C. 78f(b)(5).
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    The Commission notes that the Exchange believes that the proposal
is consistent with section 6(b)(5) of the Act because the reorganized
and enhanced descriptions of its Order Types, Order Attributes, and
related System functionality should promote just and equitable
principles of trade and perfect the mechanisms of a free and open
market and the national market system by providing greater clarity
concerning certain aspects of the System's operations.\27\ In addition,
the Commission notes that Nasdaq believes that the proposed rule change
should contribute to the protection of investors and the public
interest by making Nasdaq's rules easier to understand.\28\ Further,
Nasdaq believes that additional specificity in its rules will promote a
better understanding of Nasdaq's operation, thereby facilitating fair
competition among brokers and dealers and among markets.\29\
---------------------------------------------------------------------------

    \27\ See Notice, 80 FR at 16069.
    \28\ Id.
    \29\ Id.
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    The Commission notes that, according to the Exchange, the proposal
does not add any new functionality but instead re-organizes the
Exchange's order type rules and provides additional detail regarding
the order type functionality currently offered by the Exchange. Based
on the Exchange's representation, the Commission believes that the
proposed rule change does not raise any novel regulatory considerations
and should provide greater specificity, clarity and transparency with
respect to the order type functionality available on the Exchange. In
addition, the Commission notes that the Exchange's proposed rule
changes provide additional detail related to functionality for certain
order types and the handling of orders during initial entry and after
posting to the Nasdaq Book. Accordingly, the Commission believes that
this proposed rule change should provide greater transparency with
respect to the Exchange's order type functionality. For these reasons,
the Commission believes that the proposal should help to prevent
fraudulent and manipulative acts and practices, promote just and
equitable principles of trade, remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, protect investors and the public interest.
    The Commission finds good cause to approve the filing, as amended
by Amendment No. 1 to the proposed rule change, prior to the thirtieth
day after

the date of publication of notice of filing thereof in the Federal
Register. The proposed amendments should further increase the
Exchange's transparency with respect to the operation of various order
types and modifiers, and serve to enhance investors' understanding of
the tools available with respect to the handling of their orders.
Accelerated approval would allow the Exchange to update its rule text
immediately, thus providing users with greater clarity with respect to
the use and potential use of functionality offered by the Exchange. In
addition, the initial proposal was open for comment for twenty-one days
after publication and generated no comment. Accordingly, the Commission
believes that good cause exists, consistent with sections 6(b)(5) and
19(b) of the Act,\30\ to approve the filing, as amended by Amendment
No. 1 to the proposed rule change, on an accelerated basis.
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    \30\ 15 U.S.C. 78f(b)(5); 15 U.S.C. 78s(b).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, 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_ADDRESS>Please include
File Number SR-NASDAQ-2015-024 on the subject line.

Paper Comments

     Send paper comments in triplicate to Robert W. Errett,
Deputy Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2015-024. 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-2015-024 and should
be submitted on or before July 17, 2015.

V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\31\ that the proposed rule change (SR-NASDAQ-2015-024) be, and it
hereby is, approved, as amended.
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    \31\ 15 U.S.C. 78s(b)(2).
    \32\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-15686 Filed 6-25-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: December 20, 2010 (Volume 75, Number 243)]
[Notices]
[Page 79437-79438]
[DOCID:fr20de10-979]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Notification of Proposed Delegation Programs and Request for
Comment

AGENCY: Federal Aviation Administration (DOT).

ACTION: Notice of availability and request for public comment.

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SUMMARY: This notice announces the availability of and request for
public comments on the proposed new delegation programs (2) that will
allow organizations to perform additional functions under the Federal
Aviation Administration (FAA) Organization Designation Authorization
(ODA) program. These two proposed ODA programs will provide: (1)
Certification functions for rotorcraft-external load operator
certificates under 14 CFR part 133 and (2) the delivery of written
airman knowledge tests.

DATES: Comments must be received on or before January 17, 2011.

ADDRESSES: Send all comments on both proposed delegation programs and
functions to: Federal Aviation Administration, Aircraft Certification
Service, Delegation and Airworthiness Programs Branch, 6500 S.
MacArthur Blvd, ARB Room 308, Oklahoma City, OK 73169, ATTN: Sam
Colasanti. Or, you may e-mail comments to<EMAIL_ADDRESS>
Include in the subject line of your message the following: Comments on
Proposed ODA Programs and Functions.

FOR FURTHER INFORMATION CONTACT: Sam Colasanti, Aerospace Engineer,
Federal Aviation Administration, Aircraft Certification Service,
Aircraft Engineering Division, Delegation and Airworthiness Programs
Branch, to address listed above or by phone at<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested persons are invited to comment on the two (2) proposed
ODA programs listed in this notice by submitting such written data,
views, or arguments as they desire to the above specified address.
Comments received on the two proposed ODA programs may be examined,
before and after the comment closing date by making arrangements with
the person listed in the ``For Further Information Contact'' paragraph
above. All communications received on or before the closing date will
be considered by the Director of the Aircraft Certification Service
before approval of the two (2) programs.

Background

Air Operator ODA

    The FAA plans to establish two (2) new ODA program types in
addition to those already established by FAA Order 8100.15,
Organization Designation Authorization Procedures. Proposed revisions
to FAA Order 8100.15 are available for review, and may be accessed at
http://www.faa.gov/aircraft/draft_docs/.
    This new ODA program would allow organizations to conduct
certification functions for the issuance of rotorcraft external-load
operator certificates, in accordance with the requirements of 14 CFR
part 133. The FAA anticipates a phased-in approach to this authority,
with the FAA initially retaining authority for issuance of the
certificate. The actual delegation of the issuance of the certificate
would only be allowed after the ODA holder had successfully shown the
ability to determine compliance with all aspects of 14 CFR part 133.
    Air Operator ODAs would be appointed and managed by the geographic
Flight Standards District Office under the authority of the Director,
Flight Standards Service. The FAA anticipates granting Air Operator ODA
to only a small number of organizations based on the organization's
experience and the FAA's need to delegate the authority.

Knowledge Testing ODA

    This new ODA program would allow organizations to administer
automated airman tests and provide certified test results to
applicants. These functions are currently performed by authorized
Computer Testing Designees under the provisions of FAA Order 8080.6,
Conduct of Airman Knowledge Tests. Consolidation of these functions
under the ODA program will standardize and align their activities and
the FAA's oversight, making them consistent with other forms of ODA
programs.
    Knowledge Testing ODAs would be appointed and managed by The Flight
Standards Airman Testing Standards Branch, AFS-630, under the authority
of the Director, Flight Standards Service. The FAA anticipates that
existing computer testing designees will desire to transition to the
ODA program, and other organizations may be appointed as needed to make
testing services available to the public.

    Issued in Washington, DC, on December 15, 2010.
Susan J.M. Cabler,
Assistant Manager, Aircraft Engineering Division, Aircraft
Certification Service.
[FR Doc. 2010-31861 Filed 12-17-10; 8:45 am]
BILLING CODE 4910-13-M